BMW will end Mini production at Magna Steyr in 2016, report says

FRANKFURT -- BMW Group will end production of Mini cars at Austrian contract manufacturer Magna Steyr in 2016, a report said.

Magna Steyr currently builds the Mini Countryman and Mini Paceman. Production of the two models will move to Mini's factory in Oxford, England, and the former Mitsubishi NedCar factory in the Netherlands, where Dutch group VDL is due to start Mini production this year, the Kleine Zeitungreportedon Thursday.

Magna Steyr parent, Magna International, said in a statement Thursday that it will continue its collaboration with BMW through a new vehicle manufacturing contract.

"The new production program would start following the end of production of the current Mini models Mini Countryman and Mini Paceman being assembled by Magna Steyr in Graz," it said in the statement.

The statement did not give details of which BMW Group models Magna Steyr will build under the new contract.

The Kleine Zeitung said Magna Steyr will not be assigned particular BMW Group cars but will reserve capacity for various models depending on demand. The paper said the contract manufacturer would likely build high-volume models, which could include the BMW 5 series and the 3 series.

The agreement is likely to cover annual output of more than 100,000 vehicles over six to seven years, the paper said.

Magna Steyr declined to comment on the Kleine Zeitung report. BMW did not immediately return a request seeking comment.

Global sales of Mini cars rose 1 percent last year to a record 305,030, BMW said earlier this month.

Magna Steyr also builds the Mercedes G class and Mercedes SLS AMG body, as well as the Peugeot RCZ.